Constitutional Challenge to the 180-Day Conundrum

A major GST challenge is now before the Gujarat High Court which can turn out to be one of the most watched cases in the GST ecossytem. Priya Blue Industries has questioned the constitutional validity of the 180-day ITC reversal rule under Section 16(2), arguing that businesses should not be forced to reverse credit—along with interest—merely because commercial payments take longer than 180 days, especially when the Government has already received the tax. With the Court issuing notice and directing the appearance of the Additional Solicitor General, this case is poised to become a defining moment for India’s ITC framework and the neutrality of the GST credit system. With the above in the backdrop, J the App by JustIDT takes a look at the issue.